On the 14th of March, Facebook’s parent company Meta announced another 10,000 layoffs. The action is part of CEO Mark Zuckerberg‘s so-called “Year of Efficiency,” in which the business is reducing expenditure in the face of declining digital advertising income and rising interest rates.
Yet hidden in Zuckerberg‘s layoff announcement was a clear message to both Silicon Valley and Wall Street: AI is now as vital to the firm as the metaverse. What’s the reason? If Meta can improve its AI skills, it may be able to re-enter Wall Street’s good graces and raise the funds it requires to further its metaverse objectives in the coming years.
Zuckerberg States that the AI is the Company’s Future
A simple glance at Zuckerberg‘s Facebook article announcing the layoffs demonstrates how critical AI is to the company’s future. “Our single greatest investment is in improving AI and bringing it into every one of our products,” Zuckerberg said of Meta‘s future technology investments.
In his statement, he cited Meta‘s work on the metaverse twice, but only after discussing the firm’s AI ambitions. “We perform pioneering work across a broad spectrum of innovative technologies, which we then condense into inspirational products that improve people’s lives,” Zuckerberg wrote.
Meta Wants to Remain Competitive
Much of the reasoning for the AI craze is from the hype train initiated by OpenAI’s ChatGPT, Microsoft’s (MSFT) Bing, and Google’s (GOOG, GOOGL) Bard. The other side of the situation, though, is Meta‘s desire to remain competitive with TikTok.
That firm, which is dealing with its own existential issues, including the possibility of a ban by the Biden administration, gained its name with its AI-powered For You page, which offers an endless stream of addicting short videos. And Meta is working hard to guarantee that it is capable of matching those capabilities.
